Export Development Fund Awaiting Legislative Approval

Export Development Fund expected to assume guarantee function as of year-end Turkey Exporters Assembly Chairman İsmail Gülle: - "(Export Development Fund) Following the Parliamentary process, with the establishment of staff and management, we are working with all our might to bring this credit together with our exporters as of year-end" "We will have substantial need for Central Bank resources to meet unsecured and easy-to-access financing needs through the Export Development Fund. We will use considerable Central Bank resources in this process, and in return we will bring in substantial foreign exchange." ANKARA (AA) - DENİZ ÇİÇEK - Turkey Exporters Assembly (TİM) Chairman İsmail Gülle stated that the Export Development Fund (İGF), following the Parliamentary process and with the establishment of staff and management, is being worked on to reach exporters as of year-end. Gülle told the AA correspondent that they expect the law proposal regarding the establishment of Export Development Inc., a guarantee institution that will meet the collateral needs of exporters, to be passed by the TBMM this week. Noting that through the regulation exporters will be able to use Central Bank resources from Eximbank without collateral under the insurance coverage of the Export Development Fund, Gülle stated that the process will accelerate further once the proposal is enacted. Gülle said, "Following the Parliamentary process, with the establishment of staff and management, we are working with all our might to bring this credit together with our exporters as of year-end." "We are not chasing speculative exchange rates" Gülle also commented on Central Bank Governor Şahap Kavcıoğlu's remarks made at a meeting where he shared the fourth inflation report of this year, regarding the reduction of current account deficit through supporting production and exports with rediscount credits. Recalling that he had previously stated they support the Central Bank Monetary Policy Committee's 2-point rate cut, Gülle spoke as follows: "Let us say once more on this occasion, of the 9 percent growth expected at year-end, nearly 6 percentage points will come from the impact of exports, export-based production and investments. This means that what will determine the country's direction, employment, development, growth and prosperity, what will enrich and strengthen us, is called exports. If that is the case, we must develop policies for exports. For this reason, we supported the interest rate decision. We did not want speculative exchange rates, we are not chasing speculative exchange rates, we are pursuing stable exchange rates." Emphasizing that supporting exports with Central Bank resources is extremely meaningful, Gülle expressed that exporters' current demands for resource utilization will increase further through the Export Development Fund. Gülle stated, "We will have substantial need for Central Bank resources to meet unsecured and easy-to-access financing needs through the Export Development Fund. We will use considerable Central Bank resources in this process, and in return we will bring in substantial foreign exchange." Also referring to the increase in the ratio of exports to imports coverage, Gülle said, "When this happens, our hand and our Central Bank's hand will be strengthened, and we will conduct our policy with more comfortable steps, unaffected by external pressures and volatility."

"The Central Bank fulfilled our requests"

Gülle, recalling that TİM held a meeting with Central Bank Governor Kavcıoğlu last month, noted the following: "We shared our views and recommendations regarding exports. We are all in the same boat, we are all working for the development, advancement and growth of this country. Whatever recommendations and advice we have in this direction, we convey them directly. We view interest rates as a very serious threat. Interest rates have effects that impact investment, disrupt the market and inflation. This needs to be normalized now. We need to achieve this while keeping the exchange rate under control. There were also demands from exporters to the Central Bank. There was a matter regarding the regulation of foreign exchange transfers due to banking systems in some countries, and those have been implemented. At present, there is no problem that our exporters have communicated to us, that we have conveyed to our ministers and our President, whose solution we have not received. Everyone is working together with all their effort for its resolution, and we take pride in this."